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Why prioritizing ESG practices is crucial for building a sustainable future
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(Source: APRIL Group)
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usinesses need to prioritize sustainability and environmental, social and governance (ESG)practices in their business and operations.Sustainability beyond ESG has become a critical aspect that companies cannot ignore if they want to succeed in the long run.
The topic was addressed during the panel at Fortune Indonesia Summit with the theme “Change the World for a Better Planet”. During that session, Nadine Zamira Syarief, sustainability and esg manager at APRIL Group, highlighted APRIL’s commitment to ESG, alongside East Ventures partner Avina Sugiarto and GoTo Group sustainability head Tanah Sullivan.
The pulp and paper producer, based in Pangkalan Kerinci, Riau Province, has several initiatives that include a one-for-one conservation commitment, investing in landscape conservation funded by US$1 per tonne of plantation fiber harvested per year, and a commitment to achieve net-zero carbon emissions from its land use. With these efforts, APRIL Group aims to play a leading role in contributing solutions for climate, nature and people, while also transforming internally for long-term sustainable growth.
“ESG has taken prominence because the financial sector finally arrived on the sustainability scene. However, the conversation on ESG is still skewed toward creating shareholder value. Real sustainability is not only about creating shareholder value. Sure, it’s important, but what is more important is how sustainability is being integrated within the company and its day-to-day operations,” said Nadine.
“Sustainability is also about the company’s role in the broader society, how it creates value for people, nature and climate beyond the business,” she said. “At APRIL, that is reflected through our 5C philosophy : the belief that actions must be good for the community, country, customer, and climate only then will it be good for the company.”One of the company’s sustainability initiatives is the one-for-one conservation plan, which was first introduced in January 2014. To date, the pulp and paper company has made significant progress on its unprecedented one-for-one commitment to conserve forest areas equaling the size of its concession area, now equal to 81 percent.
The one-for-one program falls under one of the company’s pillars, which is to advocate for conservation as part of its production-protection approach to landscape management. Since 2020, APRIL has strengthened its commitment to thriving landscapes by making US$1 per tonne of plantation fiber harvested each year go toward funding APRIL Group's investment in landscape conservation.
The investment in landscape conservation is part of APRIL2030’s vision, which was launched by the group in November 2020.
“Some might question how can sustainability be implemented in a big commodity company like us? As economies continue to grow, the demand and consumption of these products will also continue to grow. The challenges of sustainability is getting consumer-driven natural resources and commodity industries like APRIL to become sustainable business,” she said.
A business must first transform internally before it is capable of contributing to external transformation, she stressed. As such, APRIL Group’s sustainability initiatives are not just a short-term commitment, but also embodied the business’s long-term view.
Asked what could be expected in the future, Nadine highlighted that climate, nature, people and a circular economy were among the company’s priorities, as integrated in its APRIL2030 roadmap. The company had a vision to expand on its commitments in these four interrelated areas by playing a leading role in contributing to a solution.
Nadine noted that the success of the project will only be achieved by collaboration with other stakeholders, as long as everyone is committed to working toward a common goal of sustainability.
In closing her session, Nadine expressed her hope that every company can start its sustainability journey and that the next generation could help trigger changes from within organizations.
“ESG and sustainability, in general, have become an expectation by all stakeholders, including policymakers, investors, financiers, customers, and even employees. As the younger generation who is taking over the workforce, we also want to work for companies who are creating a positive impact, right?” she said.
